8 Benefits Of A Credit Card For Financial Wellness
A credit card can turn out to be extremely beneficial if you are being responsible for using it. As compared to other conveniences like a debit card or cash that make you feel like you can stay within your budget, credit cards can entice the user to go on a spending spree since they have virtually a lot of credit that can be spent at a time. But if you are being responsible about using a good card, you’ll be able to get benefits like business credit card balance transfer and can even earn back some money with them.
Let’s look at the benefits:
#1 Credit Scores
Using the credit card the right way helps to build a good credit score in the long run. Credit scores are important you are looking for a loan of some sort in future, & a part of the score are calculated based on your credit history.
A lot of the credit card companies provide you with a signup bonus. This signs up bonus are generally received after you have spent a certain amount that’s aforementioned in their terms for the bonus.
#3 Cash Backs
Most of these credit cards have some sort of offers that give you cash backs once you have met the conditions of the offers they are running at the moment. This cashback might not feel like a lot but over time they’ll stack up to become a big amount.
Almost every credit card provider has some sort of rewards program available. If you want to benefit from these reward programs, you need to find the one that matches your spending habit. Rewards might be in the form of cashback or coupons, it should depend on the company that is providing you with the credit card.
All credit card companies have a feature to track the credit you have been spending. This can benefit if you are looking to manage your budget better. These records include where you spent the money, how much you spent, how much credit left in your balance. This is especially beneficial in a situation where you’ve lost your credit card, you can easily be able to find if anyone else used your card, or any unauthorized transaction happened during this period.
#6 Fraud Protection
Even if you lose your credit card and someone starts spending your credit, all you need to do is inform your credit card providers and they’ll block the card immediately. Since money from your back doesn’t get deducted immediately, you won’t lose any money. And almost every credit card provider has a condition that you are not liable for any fraudulent charges made with your credit card.
#7 Balance Transfer
With this feature, you can easily transfer your balance from your credit card to others. Some providers are there who even gives you the ability to transfer the credit balance to get cash from ATMs. You can now transfer the balance using UPI with credit card feature from some providers.
All the credit card providers come with purchase protection for their customers. Let’s say you bought a product and later found that it’s defective or damaged, you can contact your provider and get the charges reverted back. This is the sole purpose of Purchase protection.
The only condition to get benefits from a credit card is using the card responsibly. There are lots of perks, rewards & protections ready for you to claim. Financial wellness won’t come if you are irresponsible with your credit card. Just follow the right tips and you shouldn’t face any issues in this regard.